New federal rebate could save first-time home buyers thousands

The federal government has just launched a major new incentive to help make housing more affordable for Canadians. On May 27, a new GST rebate was tabled for first-time homebuyers purchasing newly built homes (full news release).

* First-time Buyers purchasing newly built homes would receive: 

• A full rebate of the 5% GST on new homes prices up to $1 million, and

• A partial rebate on homes between $1 million and $1.5 million

That’s a potential savings of up to $50,000 -- money that can go toward making your home ownership more achievable.

To qualify, borrowers must:

•  Be a first-time home buyer (no ownership in the past 4 years)
  

• Use the property as your primary residence

•  Be a Canadian citizen or permanent resident

•  Sign your purchase agreement on or after May 27, 2025

This is great news for both the housing market and young Canadians trying to get their foot in the door. It applies whether they're buying a home from a builder, building one themself, or purchasing in a co-op.